Monday 29 June 2009

Forex: Asian markets decline; Dollar rises on PBOC comments

Mon, Jun 29 2009, 06:35 GMT (Barcelona) - Stocks in Asia are declining today's Monday session after opening higher on concern in financial shares and energies slide. Today's Japanese data was good, but less than expected in industrial production but worse than expectation on Retail trades. Dollar is rising on PBOC comments that suggest the Greenback will be its key foreign reserve.

MSCI Asia Pacific Index fell 0.8 percent, Nikkei index is declining 1,21 so far today and Oil fell towards $68 a barrel. Industrial Production rose 2.9% between April and May, less than 7.0% market expectations but same as previous month, on yearly basis, data has posted a 29.5% declines in May, worse than 28.8% expected by market.

Japanese retail trade has lost 2.8% in May respected April, worse than 2.6% expected by market. Large Retailer's Sales posted 6.5% decreases in May, worse than expected too.

"There are not any sudden changes in our forex reserve policy": PBOC

PBOC comments about its policy on keeping Dollar as foreign reserve currency for now has eased concern on Greenback, putting higher. Zhou Xiaochuan said: "our forex reserve policy is always quite stable... there are not any sudden changes"

USD/JPY has reached 95.60 as intra-day high in the Asian session, USD/CHF is rising 0.80% so far today from opening price to levels close to 1.0900.

GBP/USD is posting 0.60% declines so far today to break below 1.6450 as well as EUR/USD, which has fallen to levels below 1.4000 during the Asian session.

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